Harold Reese must choose between two bonds: Bond X pays $84 annual interest and has a market value of $900. It has 12 years to maturity. Bond Z pays $86 annual interest and has a market value of $770. It has four years to maturity. Assume the par value of the bonds is $1,000. a. Compute the current yield on both bonds.
b. Which bond should he select based on your answers to part a
c. A drawback of current yield is that it does not consider the total life of the bond. For example, the approximate yield to maturity on Bond X is 9.82 percent. What is the approximate yield to maturity on Bond Z? The exact yield to maturity?
d. Has your answer changed between parts b and c of this question?

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.